Determining a Not-for-Profit Hobby vs. For-Profit Trade or Business On-Demand Webinar

Summary

Taxpayers frequently start new endeavors. However, before filing a business return for them, such as a Schedule C (Form 1040), Profit or Loss From Business, you must be absolutely certain they are truly in a for-profit trade or business and not just a not-for-profit hobby. In this webinar, we’ll discuss analyzing the taxpayer’s activity to determine if it is a hobby or for-profit trade or business, while using the nine factors outlined in §183. After we complete an analysis, we will then discuss how to report the income, deduct the expenses and which form to complete depending on if the activity is a hobby or a for-profit trade or business. In addition, we’ll review the safe harbor rules for postponing the determination of for-profit or not-for-profit when an activity has losses in its first few years.

Objectives

Upon completion of this course, you will be able to:

• Differentiate between a for profit trade or business and a not-for-profit hobby
• Explain how to report the income and deductions for a for profit trade or business and a not-for-profit hobby
• Describe the safe harbor rules for postponing the for profit and not-for-profit determination
• Summarize the reporting requirements for a for profit trade or business and a not-for-profit hobby

Course Details

This on-demand webinar includes the presentation slides, exam questions, recording of the webinar broadcast with review questions, and attendee top questions. CPE is issued after exam is successfully completed.